Support System over the Lifecycle: A Cross-Country Comparison

• Main Author: Lee, Sang-Hyop
• Format: Article
• Language: English
• Published: Korea Development Institute 2013-03-01
• Series: KDI Journal of Economic Policy
• Subjects: Social Welfare(사회복지); Economic Lifecycle(경제수명주기); Population Aging(고령화); Fiscal Sustainability(재정 지속 가능성)
• Online Access: https://doi.org/10.23895/kdijep.2013.35.1.33

I describe the complex support systems around the world, focusing on their importance for economic growth and fiscal sustainability. Familial transfers for old age support are somewhat significant in some Asian economies including Korea, although they deteriorate quite rapidly. Public transfer systems are less significant in Korea compared with most OECD member countries. This is important because Korea has had the opportunity to develop sustainable systems less encumbered by obligations made to current and future generations. Relying on accumulated assets rather than transfers helped countries create capital-intensive economies that can maintain standards of living. This is true for Korea, but the question of how the labor and capital market will respond to the rapidly changing social welfare system remains as a critical question.